Can I build my own dynamic disk pool san server iscsi target

I have an 2 unused chenbro16 bay San storage cases with super micro motherboard with 2 dual core Xeon 1.6 processors. I have laying around :
16 sas 32 gb drives
12 sata 36gb wd raptors
4 sata 150gb wd raptors
6 sata 80gb wd caviar
1 raid controller 16 port
2 raid controllers 8 port each
12 gb or ram maybe more
A bunch of dual port gb nice
2 10 gb intel nics.

I want to go virtual with hyper v. I have two identical servers virtual ready both with 2008 server enterprise r2. Currently one is up and running with 4 virtual servers sitting on a local raid 1 mirror.

I'd like to implement a low cost iscsi solution. And some sort of replication either between the two hyper v machines or if some how I can build two sans that can replicate each other.

I have about 2k in my IT budget but I'd like to use as little as possible. Any suggestions on the cheapest but most flexible route to take? I still prefer quality and spend a few bucks and less headache over super cheap with more headache.
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MEATBALLHEROAuthor Commented:
Oops...forgot to mention I only use 350gb for my current vms. Also I don't know much about dynamic disk pooling. But it sounds like the way to go as I expand.  Would love to know more if I can set this up eventually.
Run Solaris and use ZFS for this frankenbox.   Let ZFS take care of the RAID as it will not only be faster, but it can tolerate any mix & match of HDDs any way you want.  You can also do things like have different RAID levels, compression, multiple copy counts, de-duplication for different filesystems all at the same time.  It tolerates lots of errors as well.

(Yes, iSCSI is native, online expansion, hot snapshots, and such are native).  With built in NFS, CIFS/SMB support also then it will play nice in windows environment.

Don't even think of doing this with a windows machine.

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MEATBALLHEROAuthor Commented:
Sorry I wrote the post from home made a mistake again. Double oops...I came into the office and the 16 SAS drives are 73GB each and I have 6 of the wd 150 GB raptors.

And I have two 16 Bay boxes with dual processors.

Can I make two franken boxes with
8 SAS 73GBs
8 WD 36GBs Sata Raptors

maybe? And have them replicate somehow for high availability?

  HYPERV -------- HYPERV
       \               \    /            /
  SWITCH---- X  ----SWITCH
       /               /    \            \
You do not need a SAS switch (they are also expensive).   Just connect the storage subsystems to HBAs in both computers, and be sure to look at HDD serial numbers and not try to mount the same HDDs in pools on both systems.

If you want clustering, it is available, but quite expensive.  I'd forget that as an alternative. It would cost less money to invest in a high-end server that has built in redundant power, CPUs, etc..
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